Bauer company’s preferred stock is currently selling at $80 per share and pays an annual dividend of $8 per share. the company will incur 5% flotation cost if they issue new preferred stock. what is bauer’s cost of preferred stock (with adjustment of flotation costs). (a) 11.05%(b) 10.23%(c) 10.53%(d) 11.81%(e) 10.74%

(C) 10.53%

Explanation:

The flotation cost makes the cost of the preferred stock at more flotation because a portion of the proceeds from the share is taken away to pay up the flotation cost.

i believe the answer would have to be a dependable person

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%